Good morning, and thank you for the opportunity to speak today.
Similar to WCMRC, Seaspan is an establishment that's been on the B.C. coast for a long time. In fact our roots go back to 1886, and our shipyard business goes back all the way to 1902. For those of you who may not know Seaspan, we have a multi-faceted, diversified marine business here, focusing on areas both on the water and on land.
On the water, we currently operate about 111 barges that run up and down the coast, primarily in the forest products and aggregate business and also some oil and chemical business. We also operate 35 tugs, 20 of which are in the business of actually pulling those barges up and down the coast, but 15 of them operate in the business of docking, undocking, and escorting all vessels in the port of Vancouver, Roberts Bank, the Fraser River, and Victoria. With the exclusion of the north, Prince Rupert and Kitimat, at least for today, we do the primary number of dockings and undockings. To put that into shape, that's about 3,200 dockings and undockings in the port of Vancouver alone. We do more than 1,000 at Roberts Bank, which is the largest export terminal in North America for coal. We've also done about 20,000 separate escorts in the last 30 years underneath the area called the Second Narrows Bridge.
It's a very important part of the discussion and you'll hear it, obviously, when you're hearing about topics like twinning of the Kinder Morgan pipeline: safe transportation and navigation in the B.C. coast. A lot of people, even in this area right here in Vancouver, don't realize that tankers have been safely navigating this area since 1952, and Seaspan has been a big part of that safety regime. Again we have 20,000 escorts through the port of Vancouver. All of that goes between a 450-foot span at the rail bridge right at the Second Narrows. So there is an exceptional safety record, with no incidents during any of that period of time, and it's something that Seaspan and our mariners are very proud of.
Outside of our tug and barge business, we are also a ferry operator. After B.C. Ferries, we are the second largest operator of ferries in western Canada.
Last but not least and what some in the committee may know us for, we're also one of the largest shipowners in Canada, and on October 19, 2011, we were very fortunate to be chosen as the non-combat builders for the national shipbuilding procurement strategy. So we'll be cutting steel very soon on our first vessel for the Canadian Coast Guard, in building hopefully 20 to 30 years' worth of ships for the Royal Canadian Navy and the Canadian Coast Guard.
That's a little bit about Seaspan and who we are. Obviously it's a long history. We have about 2,500 employees. We'll be reaching about 3,500 within the next three years. Everything we do revolves around the ocean and the sea and the protection of the sea.
I myself am actually a former mariner. I sailed for a number of years in the international market. I hold a 1,600 ton captain's licence, which means I could actually be a captain on everything in the Seaspan fleet. I also sailed internationally on tankers. So the carriage of dangerous goods is something I personally know quite well. I sailed all the way up to unlimited chief officer, unlimited vessel size, unlimited ocean.
T hat is something on the marine business. I can't tell you much about mining or some of the other great things that go on here in British Columbia, but we know the marine business quite well.
When I look back at the question about safety and what this committee was looking at, there was one thing I really wanted to speak about, and that's the regulations. What we see, as an operator in British Columbia, is that we fall predominantly under the federal regime here. We also have some provincial regulations, but it is predominantly federal. We are at a point where we have to deliver safety to our employees first, our crew, and then our customers and their products. In order to do that, a lot of regulations have come out, especially I would say, more in the last 20 years than in the previous 100 years, say, and they were all aligned specially by Transport Canada to make a safer regime for mariners and the products.
I'm a strong believer in regulation. I know you probably wouldn't imagine a CEO of a marine company saying that, but I do. I do because it's a differentiator, and it's ultimately what keeps people safe. The reason I bring this up as something important is that Seaspan follows the rules. There are some great companies that you probably know, such as Fednav, out east. A number of Canadian operators follow the rules. Unfortunately, there are a number of Canadian operators, especially in the small vessel class, that don't follow the rules.
Back in 2011, the regional director general for Transport Canada located here in Vancouver presented to our officers conference on what Transport Canada was doing. We had about 300 of our marine officers talking about topics like safety operations, everything that's going on in Seaspan, and we had Transport Canada make a presentation.
At the end of the presentation, the mariners—not me, but the actual mariners—shared with Transport Canada their dismay that there were two standards. There were standards that companies like Seaspan followed with regard to safety, safety management systems, quality management systems, and then there was everybody else. Yet no one seems to check on them. The regional director general took it on himself and said, “That doesn't sound right. We're going to do something about that”.
In the fall of 2011, shortly after that officers conference.... Unfortunately, Transport Canada does not have any boats to actually go out to do surveys, audits, and checks of vessels, so they did two four-day inspections, along with the RCMP, who thankfully do have boats. They focused on tugs and barges, and especially those vessels transporting dangerous goods and petroleum. They boarded 33 vessels on those two four-day patrols, and they found that 64%, or 21 of the 33 vessels, in some way were not in compliance with the Canada Shipping Act, 2001. That was 64%. Those not in compliance were all given notices, and in some cases even administrative monetary penalties.
The problems they saw included life-saving equipment not being up to date, and non-valid certificate of competency. Believe it or not, they found one master who did have his licence with him, but it had expired 10 years earlier. There were medical certificates out of date or absent, non-adherence to marine personnel regulations, and structural deficiencies. In most cases, the masters were not even fully aware of what the Canada Shipping Act, 2001 actually discussed or contained.
They did say that most of these issues were on the smaller vessels, but 64% of all of the vessels that were checked, in a very, very small period of time, failed. When I talk about regulations, I'm very serious about it because there's a reason for them.
We just heard from WCMRC about a lot of change in the oil response business due to the Exxon Valdez incident in the spring of 1989. We don't want to see another incident occur and then have more regulations created at that time. The regulations that are currently on the books, the ones that are already involved with the Canada Shipping Act, are good regulations. My point is that they have to be enforced.
Transport Canada, the folks we see and know and work with closely, do a fantastic job. Their hearts are in the right place. Unfortunately, I don't see that they have the budget. They don't have the manpower and the womanpower, and they don't have the vessels to actually do the audits and inspections in order to make sure that regulations are being adhered to.
Last but not least—it was brought up by the previous speaker—I think the tanker safety expert panel that was conducted in 2013 was an excellent example of the federal government listening to all of the areas, both the east coast and west coast, on how tankers can and should be safely transporting dangerous goods throughout the B.C. coast. I really look forward to the three aspects that they focused on, which are prevention, preparedness and response, and last, liability and compensation, which is short for the polluter must pay. I believe they hit the nail right on the head in the areas they identified, and I certainly look forward to the federal government now turning those words into actions.
Thank you again for letting me speak this morning. That concludes my comments.